Financial Responsibility for High-Risk Retail Products

Closing the liability gap in smoke shop sales of unapproved psychoactive products

A teenager collapses.
A young father doesn’t wake up.
A college student has a seizure in their dorm room.

The product came from a smoke shop down the street. Bright packaging. No warning. No approval. No oversight.

And when the family asks the most basic question — who is responsible? — the answer is chilling:

No one can pay.

The shop closes.
The LLC dissolves.
The insurance denies coverage.
The medical bills remain.
The funeral still happens.

Taxpayers pick up the cost. Families carry the grief. And the store? It reopens under a new name.

This is not a loophole.
It is a business model.

Smoke shops are selling unapproved, adulterated drug products that can injure or kill — but they are not required to carry insurance or funds that actually cover the damage they cause.

If a truck carries hazardous waste, it must be bonded.
If a business sells regulated substances, it must prove financial responsibility.
If a company puts the public at risk, it must show it can pay.

So why are smoke shops exempt?

MAHA believes in one simple principle:

If you profit from dangerous products, you must be financially responsible for the harm they cause.

That’s why we are asking state legislatures to require smoke shops selling unapproved drug products to post $1 million in escrow or bond — not as a fine, not as punishment, but as protection.

No injury? No death? They never lose a dollar.

But if someone is harmed, families are not left bankrupt, begging, or forgotten.

This policy does not ban products.
It does not criminalize users.
It does not shut down legitimate businesses.

It does one thing only:

It makes risk visible — and responsibility unavoidable.

If smoke shops say their products are safe, this should not scare them.
If they say they’re insured, this should be easy.
If they say they care about communities, this should be obvious.

But if they cannot back their products with real money, maybe they should not be selling them at all.

Because when harm happens, families shouldn’t be the collateral damage.

Final Word from MAHA

MAHA — Mothers Against Herbal Abuse
Protecting families. Closing loopholes. Demanding accountability.

Copy-Paste Letter to Your State House and Senate Representative

Subject: Require Financial Responsibility for Smoke Shops Selling Unapproved Drug Products

Dear Representative [Last Name] / Senator [Last Name],

I am a constituent in [City], [State], and I am writing to request a practical, public-health-focused policy: a financial responsibility requirement for smoke shops and vape shops that sell unapproved, adulterated drug products marketed as “supplements,” “legal highs,” or “wellness.”

Right now, when someone is seriously harmed or dies after using a product purchased at a smoke shop, families often discover an ugly reality: the store’s LLC can dissolve, insurance may deny coverage, and there is no realistic way to recover medical or funeral costs. The public pays. Families suffer. The store reopens under a new name.

This is not a rare technicality. It is a predictable loophole — and it encourages irresponsible retail behavior.

I am asking you to introduce or support legislation requiring retail smoke shops selling unapproved ingestible or inhalable psychoactive products to maintain $1 million in financial assurance, such as:

• a surety bond
• a dedicated escrow account
• or another enforceable form of financial responsibility

This policy is not a ban. It does not criminalize users. It does not target legitimate businesses. It simply ensures that if a business profits from high-risk products, it can cover the harm when things go wrong.

At minimum, the law should include:

1. A clear definition of covered products (unapproved ingestible or inhalable psychoactive products marketed with drug-like effects).
2. A financial assurance requirement of at least $1,000,000 per retail location (or equivalent).
3. A mechanism for victims or families to access funds in the event of verified harm.
4. Strong penalties for noncompliance, including suspension or loss of licensure to operate.

If a business claims its products are safe, this requirement should be easy. If the business cannot back its safety claims with real financial responsibility, it should not be operating in our communities.

Please let me know if you are willing to sponsor or support a bill establishing a financial responsibility requirement for smoke shops, and what the next steps are. I am happy to provide documentation, examples, and model language.

Sincerely,
[Your Full Name]
[City], [State]
[Phone or Email]